Published On: Fri, Sep 1st, 2017

Hybrid Annuity-Based-PPP for Sewage Treatment Plants at Varanasi and Haridwar

Hybrid Annuity-Based-PPP for Sewage Treatment Plants at Varanasi and Haridwar. For the first time, the creation and maintenance of sewage treatment infrastructure under Hybrid Annuity based PPP model has taken off, with NMCG awarding the project to private sector for construction and maintenance of Sewage Treatment Plants (STPs) in two major cities of Varanasi and Haridwar in the Ganga river basin. The construction, operate and maintenance of a 50 MLD STP in Varanasi has been awarded to a consortium led by Indian infrastructure major – Essel Infra Projects Limited at an estimated cost of INR 153.16 crore, the work to develop, operate and maintain the total sewage treatment capacity of 82 MLD (68MLD in Jagjeetpur + 14MLD in Sarai) STPs in Haridwar at an estimated cost of Rs 171.53 crore has been awarded to HNB Engineers Private Ltd. The conditions in the project would ensure that no untreated sewage waste water is allowed to flow into river Ganga.

Hybrid Annuity-Based-PPP for Sewage Treatment Plants at Varanasi and Haridwar. A very important feature of this model is that both the Annuity and O&M payments are linked to the performance of the STP to ensure continued performance of the assets created due to better accountability, ownership and optimal performance. Hybrid Annuity based PPP model has been adopted for the first time in sewage management sector. Such a model has earlier been adopted successfully only in highway sector.

Since the inception of Hybrid Annuity-PPP model, many national and international players have shown interest in NMCG projects. More than 30 firms showed-up for pre-bid meetings of Varanasi and Haridwar projects. The selection of the project awardee was based on lowest bid project cost for developing and operating the treatment infrastructure for a period of 15 years.

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